chapter 3 present new

8/21/2019 Chapter 3 Present NEW

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PRESENTER:

MARINA YUSOFF 2010672752

NUR SYAFIQAH KAMARUDIN 2010847576

CAROLINE APAU 2010488388

AZWADI ALI 2009424756

NURUL AFIQAH MOHD ZAKI 2010802956

PRODUCTION OF

1 KG PER YEAR

INSULIN


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PROCESS BACKGROUND/SELECTION

CHAPTER 1
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INTRODUCTION

Diabetes is one of the chronic diseases

occurs when the glucose level in blood is

increases due to breakdown ofcarbohydrates

Insulin can help to convert excessive

glucose into glycogen to be stored in liver


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Human insulin can be produced by

four different methods

Extraction from human pancreas

Chemical synthesis via individual amino

acids. Conversion of pork insulin of

semisynthesis.

Fermentation of genetically engineeredmicroorganisms.


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fermentation of genetically engineered

microorganisms or can be simply called as

recombinant DNA technology is chosen inthis project

This is because this technique is safe,

high recovery, high purity and almostsame with human insulin


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Genetic Modification Organism


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GENERAL PROCESS

Consists of fourth teen important steps

35 equipments and reactors involve in this

batch process Duration for each batch is 6 days

Production for each batch is 1.81 kg

Production per year is 100 kg

Downstream process to improve the

quality of desired product


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Fermentation process

Cellisolation

CellDisruptio

n

Centrifugation

SolubilizeInclusionBodies

(IB)

CNBr-Cleavage

SulfitolysisRefolding

HICcolumn

Enzymatic

Conversion

ReversePhase

Chromatography

Secondstage

purification

PolishingFreeze

Dry


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MARKET ANALYSISN

CHAPTER 2


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Insulin Worldwide Market

Top 10 Coun tr ies Number of People with Diabetes


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Insulin Worldwide Market


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Trends in the Current DepressedMarket

The Price of Insul in


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Profit Margin


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Break Even Analysis


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Break Even Calculation

Variab le Cos t

Cost Item

Formula value

Raw Material RM 286 millions

Waste Treatment RM 27 thousands

Utilities RM 382 thousands

Operating Labour RM 993 thousands

Maintenance and repairs

0.06FCI

RM 13 millions

Operating Supplies 0.009FCI RM 1.94 millions

Total

RM 302 millions


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Break Even Calculation

Fixed Cos t

Cost Item Formula Value

Fixed capital investment FCI RM 215 millions

Local taxes and insurance 0.032FCI RM 6.88 millions

Plant overhead costs 0.708 + 0.036FCI RM 8.45 millions

Total

RM 230 millions


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Break Even CalculationTotal Revenue

Total Revenue = Production of insulin x Price of

insulin

Production of insulin = 99.55 kg/year

Price of insulin = RM 11.4 millions

/year

=


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Break Even CalculationBreak Even Po int (BEP)

BEP = (Fixed cost/ Contribution margin) x Production

Contribution Margin = Revenues Variable Cost

Contribution Margin = RM 834 millions

Fixed Cost = RM 230 millions

Production = 99.55 kg/year

BEP = 27.50 kg/year need to be


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Cumulative Cash FlowOperat ing Cost for the First Year

Total Cost = Variable Cost + Fixed Cost

Variable Cost = RM 302 millions

Fixed Cost = RM 230 millions

Total Cost = RM 532 millions


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Cumulative Cash FlowCumulative Cash Flow Analysis

Year

Total cost

Cumulative cash flow

1 - 532,678,960 - 532,678,960

2 - 372,514,550 - 905,193,510

3

1,136,861,000

231,667,490

4 1,136,861,000 1,368,528,490

5 1,136,861,000 2,505,389,940

6 1,136,861,000 3,642,250,490

7 1,136,861,000 4,779,111,490

8 1,136,861,000 5,915,972,490

9 1,136,861,000 7,052,833,490

10

1,136,861,000

8,189,694,490


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Cumulative Cash FlowCumulat ive Cash Flow Diagram

-0.2

0

0.2

0.4

0.6

0.8

1

0 2 4 6 8 10 12CumulativeCashFlow

(1010)(RM)

Year

Payback Period


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ConclusionMarket Analysis o n Insul in Produc t ion

Fixed Capital Investment is RM 215 millions and this cost isindependent of production rate.

The Total Production Cost is RM 532 millions. It is summation

of Variable Cost and Fixed Cost.

The total insulin sale per year is RM 11.4 millions.

Total Revenue = RM 1.14 billions.

Net annual Profit = RM 700 millions

Total Production = 99.55 kg/year

BEP = 27.50 kg/year Productions

Up the BEP, it has been estimated that the plant would gainsome profit and therefore this project can be considered as

profitable as the production rate also is in conjunction with the

supply and demand in Malaysia.

The payback period is estimated about 3 years


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SITE SELECTION

CHAPTER 3


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Chapter 3 : Site Selection

Comparison between Senai, Pulau Indah and Gebeng between several

criteria

A rating evaluation has been made

After all comparison, we decide to choose Gebeng Industrial Estate Phase

3

Gebeng Pulau Indah Senai

Total Rating 38 37 35


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Location Description

a small town and main industrial area in Pahang state in Malaysia

near Kuantan Port

Kuantan is being identified as a Special Economic Zone (SEZ)

located inside East Coast Economic Region (ECER)

located only 5 kilometers from the Kuantan Port in Kuantan City

25km away from the Kuantan town and 250km from the Kuala

Lumpur


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Land availability and prices

selling prices RM 15 per sq

can be bought with minimum 3 acres (130680 ft2) up to

maximum 250 acres (10890000 ft2)

So minimum price is RM 1,960,200 for 3 acres


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Raw Material Availability

Supply within the Malaysia and imported from the

oversea

Company that responsible for been supplier within

Malaysia is Merck Sdn Bhd, Sigma-Aldrich (M) Sdn.Bhd, and Fisher CW Medical (M)

Raw materials will be transported from these company

via road

The other raw material imported from oversea istransported to nearest airport and port.


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Transportation Network

Gebeng by-pass between Gebeng Industrial Estate andKuantan Port

The by-pass will directly link with the East CoastExpressway to connect Kuala Lumpur with Kuantan

Kuantan Port is located only 5 kilometers from theGebeng Industrial Estate

Sultan Ahmad Shah Airport, Kuantan is approximately35km from Gebeng Industrial Estate and connected via

Jalan Pintasan Kuantan Not compacted with other activities, so smooth trafficking

of the import and exporting process


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Availability of Utilities

main electricity supplier in Gebeng Industrial Estate is

Tenaga Nasional Berhad (TNB)

Phase I and II is supported by its 132/11kV main intake,

for Phase III, two sources of electricity supply areavailable which are and 12/275kV main intake

water supply is Semambu Water Treatment Plant

capacity 2MG/D

main telecommunication supplier is Telekom Malaysiafor instance Integrated Systems Digital Network (ISDN),

digital line, MAYPAC, Internet and video conferencing


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Availability of Labour

main labourssources is Kuantan population is

approximately 607,778 persons.

Also involves Kemaman area

Pahang provides access to skilled manpower as whichcan be acquired numerous institutions of further studies

Universities Others Facilities

University Teknology MARA

University Malaysia Pahang

International IslamicUniversity Malaysia

Kolej Islam Pahang,

Politeknik Sultan Haji Ahmad

ShahKolej Komuniti Kuantan Kolej

ShahPutra Kuantan

Kolej Poly-Tech MARA

Institut Kemajuan Ikhtisas

Pahang (IKIP) College


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Government Incentives

Development of Gebeng Phase III which will beattraction for the investor to Pahang

The Eastern Industrial Corridor, which is the governmentbacked economic region developed into an ultra-modernindustrial region

Accelerated capital allowance provides a specialallowance, where the capital expenditure is written offwithin 3 years

water supply to 64 MG/D Building of new pipes and water tanks in Gebeng

Industrial Estate


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MATERIAL BALANCE

CHAPTER 4


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General Mass alance

Equation


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1 batch approximately 6 days

100 kg/ yr X 1 yr/ 330 days X 6days/batch

= 1.818 kg/batch 330 days/ 1 yr X 6 days/ batch = 55

batches per year

Production rate = 100 kg/year


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The calculation is based on the production rate of 100 kg/year of

insulin.

The target production rate per batch is 1.818 kg/batch.

Operating days for the plant is 330 days per year, 24 hours daily.

The system is a steady-state operation.

The system behaves as an ideal condition.

No leakage in the pipes or vessels inside the plant.

All the catalysts used during the process do not contribute to the

mass inside the system. The total input of substances to compressor, pump, valve, mixer or

heat exchanger is equal to the total output.

All calculations are done in kg/batch


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TSB + O2+ N2+ NH3+ H2O + kanamycinbiomass

(E.coli)+ O2+ N2+ NH3+ H2O+CO2+ kanamycin + ATPs


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Overall mass balance: total in = total output

The percentage of air consists of 21% of oxygen, 79% of

nitrogen

870 kg/batch of Ammonium gas is purge into this system Basis of 43 504 kg/batch air is purge into the fermenter

system


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1.4% of oxygen from respiration of bacteria cell is

release as carbon dioxide

Conversion process for TSB is 95%

0.5 kg biomass can be generate for every 1 kg of TSBconsumed

kanamycin does not take part in the reaction so that total

input = total output

74 % of water will be increase after undergofermentation process due to biological process that

occurred.


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Percentage error of calculation:

Manual calculation = 1.800kg/batch

Simulation = 1.810 kg/batch Target production = 1.814kg/batch

(1.810-1.800) /1.810 X 100% = 0.55 %

(1.814-1.800)/1.814X 100% = 0.77 %


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ENERGY BALANCE

CHAPTER 5


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Important in worldwide manufacturing plant to reduce the

cost and energy consumption.

To analyze and optimize the uses of energy in designinga plant.


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The system is assume as an open system

Q-Ws= H+Ek+Ep

The equation reduced to

= =

=Hf+

= Hf+ [ ]

Ws, Ek and Ep =0


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1. Assumptions:

Open system (Q=H) and steady state process

- No moving parts considered in the system

- All equipments are static

Heat from pressure change is neglected

All streams and reactions occur in liquid phase- Occurs in homogeneous mixture. Thus, solid and gas is not taken into

account.

Heat of mixing, Hm is neglected

2. Basis:

Tref = 25C = 298.15K Pref= 1atm Mass flowrate is in kg/hour

Heat capacity,Cp get from SUPERPRO library

Using heat of formation method due to the facts that heat of reaction method for certain standard conditions is

unknown.


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ENVIRONMENTAL AND SAFETY CONSIDERATION

CHAPTER 6


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Role of chemical engineer

Lack of consideration

Negative impact

-Human

-Animal

-Aquatic life


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Follow the Malaysia Act & Regulation

-OSHA

-Environment Quality Act

(Air pollution, Scheduled Waste)

-Biosafety Act

Hazard

HIRARC


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HAZARDOUS WASTE


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Classification


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Treatment

Biological Treatment

1.Inject with Chlorine

2.Sterilize the waste3.Send to the Jabatan Alam Sekitar

Chemical Treatment

Recycle

Send to the Jabatan Alam Sekitar


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Management

Recycle

Waste area

Labeling the waste

Put the sign of hazardous area

Disposal to the sanitary landfill

chapter 3 present new

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